MasterCraft Boat Holdings, Inc. (NASDAQ:MCFT) Analysts Are More Bearish Than They Used To Be

The latest analyst coverage could presage a bad day for MasterCraft Boat Holdings, Inc. (NASDAQ:MCFT), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.

Following the latest downgrade, the seven analysts covering MasterCraft Boat Holdings provided consensus estimates of US$412m revenue in 2024, which would reflect a concerning 38% decline on its sales over the past 12 months. Statutory earnings per share are anticipated to plummet 68% to US$1.67 in the same period. Prior to this update, the analysts had been forecasting revenues of US$569m and earnings per share (EPS) of US$3.76 in 2024. Indeed, we can see that the analysts are a lot more bearish about MasterCraft Boat Holdings' prospects, administering a sizeable cut to revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for MasterCraft Boat Holdings

It'll come as no surprise then, to learn that the analysts have cut their price target 27% to US$26.00.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 38% by the end of 2024. This indicates a significant reduction from annual growth of 15% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.0% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - MasterCraft Boat Holdings is expected to lag the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for MasterCraft Boat Holdings. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that MasterCraft Boat Holdings' revenues are expected to grow slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of MasterCraft Boat Holdings.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for MasterCraft Boat Holdings going out to 2025, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.